Private Equity Thoma Bravo Inks $9.6B Deal To Acquire RealPage: WSJ

Chicago-headquartered private equity firm Thoma Bravo LP is acquiring property-management software maker RealPage Inc (NASDAQ: RP), the Wall Street Journal reports. RealPage’s leveraged buyout is valued at a purchase consideration of $9.6 billion.

What Happened: The private equity firm has agreed to pay $88.75 per share, representing a 31% premium to RealPage’s closing price on Friday.

RealPage’s stock tumbled to a 52-week low of $36.91 when the pandemic’s onslaught led to an overall slump in the stock market. Since then, the stock is up 59%.

The $9.6 billion deal is the largest acquisition by Thoma Bravo to date. It handles $70 billion in assets.

In October, Thoma Bravo raised $22.8 billion from its three funds; Thoma Bravo Fund XIV (a $17.8 billion fund), Thoma Bravo Discover Fund III (a $3.9 billion fund), and Thoma Bravo Explore Fund (a $1.1 billion fund).

Why Does It Matter: Steve Winn, chief executive officer of RealPage, remarked that the company’s preparedness “to go virtual” during the pandemic was a crucial growth driver, cites the WSJ report.

RealPage’s real-estate-rental software caters to the property owners and tenants by facilitating rental payments and acting as a database for lease transactions on a real-time basis. This database makes it possible to track property trends and estimate the market direction, the Journal noted.

Price Action: RP stock closed 0.92% lower on Friday at $67.83.